As a native Midwesterner with a background in the asphalt business, Richard Webster knew a lot about equipment and working with down-to-earth, construction-related customers. So in late 2019, when he was looking for a new business opportunity for himself and for his sons to run when he retires, a sign advertising the sale of an equipment rental store immediately captured his attention.
“It reminded me of when I was in high school working for my father at a roofing equipment and supply business in Chicago,” he says. “I really enjoyed working there with all the equipment and interacting with the blue-collar guys that came in.”
Webster was keen on the idea of running a rental business. The trouble was, there were some sticking points to overcome.
First, Webster would need to secure financing for the purchase during the height of the pandemic — a time when banks were highly scrutinizing credit transactions due to the economic turmoil. Second, the rental store — True Value Rental of Inverness, Fla. — was more than three decades old and due for a lot more than just a fresh coat of paint. Third, he needed to repair some customer relationships that had gone sour in past years.
On the financial side, after due diligence and negotiations, Webster entered into a purchase agreement for the business assets and real estate. That was the easy part.
“I faced an uphill battle with my bank for financing after the pandemic began in early 2020,” he says. “I had a very good relationship with them, but the economic uncertainties related to COVID-19 required more than normal scrutinization.”
The positive performance of the equipment rental segment during the pandemic was a factor in Webster’s favor as he secured the needed financing.
“The bank wanted to see evidence that business was not declining as a result of COVID and, fortunately in this line of work, we were able to show that. Homeowners, even though they weren't working, were taking on projects at home using rental equipment. Business was pretty stable through that. But we had to get a lot of background information from the former owners on what was going on over the last few months,” Webster says.
Then, there was the COVID-amplified magnifying glass the bank placed on Webster himself as a borrower. “Of course, they wanted to look into my personal financial situation and my capability and capacity to run this type of business — but with more of a fine-toothed comb than they might otherwise because they were worried about lending a large amount of money when the whole COVID thing was new,” he says.
In the end, Webster’s persistence, preparation and prior business experience paid off. He says his successful acquisition of the loan was down to “just a tremendous amount of financial documents, background and proving that I had a good business plan to get this turned around and moving forward. It took nine months of jumping through hoops before the sale closed in October 2020 and I took control.”
Once the store was officially his, Webster turned his attention to upgrading the facility inside and out while bringing a fresh perspective on the workplace’s procedures and culture.
“I wasted no time in spreading the word that the business was under new ownership,” Webster says. “The showroom underwent a Stihl remodel. [The previous owners] were in the middle of a falling out with
them. Stihl wants the showroom to be modern and up to date in displaying their products, and the showroom looked like something from the '80s or '90s. Stihl was happy to help us and provide all the counter shelving, lighting — everything. So, we straightened that out quickly. And the building was repaired and painted. We used banners, social media, direct mail and word of mouth to make it known that great changes were coming. Since we have 45,000 vehicles a day passing our building, I had a new LED sign installed that we can program with all kinds of cool messages and graphics. We've got at least a million vehicles per month seeing it and a steady flow of new customers.”
An overhaul of rental inventory and other fixed assets also was in order.
“I knew that if we were bringing in more customers, we had better have the right equipment and it needed to be well-maintained. I relied on historical data, missed rentals and common sense to replace outdated equipment, liquidate useless inventory and eliminate non-performing lines. We also brought in a couple of new product lines that complement our other products. Customers come in for one thing and it's great to see their amazement at what else we can sell or rent to them. Improving our technology has also helped to better take care of customers, track our progress and protect our assets. The computer system and credit card terminals were very outdated and limited our ability to fully utilize our point-of-sale program. We recently finished a complete server and terminals upgrade and are now in the 21st century,” Webster says.
As important as it was for Webster to upgrade the physical plant, it was equally important for him to take steps to assure his staff that he would preside over a workplace that was professional and employee-friendly.
“I told the employees from day one that I would treat them the way I'd like to be treated,” Webster says. “One of the first things I did was to create written policies and procedures for everything we do. We needed a standardized way of performing our duties and I met with each employee to discuss each policy. I wanted us to look professional, so we hired a uniform service, which was very well-received by the employees. Wages were increased, health insurance was offered and a paid time-off policy was implemented. We also sometimes cater lunch and often bring in donuts. We just treat everybody here like family. My son, Evan, and my daughter-in-law, Maddy, are heavily involved in the business and have been a huge help, and my youngest son, Nicholas, works after school with us. Everybody smiles, laughs, jokes and has a good time, yet everybody knows what they need to do around here. It's working out really well so far.”
And then there was the matter of enticing back some past customers who, having had a negative experience of one type or another with the previous ownrship, had gone elsewhere for their rental needs.
“Rebuilding our customer base and fixed assets went hand in hand,” Webster says. “The former owners were burned out and wanted to retire, so the business was on autopilot for the last few years. As a result, some customers had left and the business was stagnant.”
With the ownership transition process behind him, a refitted store and high morale among staff, Webster looks forward to a successful run with the new-and-improved True Value Rental of Inverness.
“We've been fortunate to be profitable from day one and most of the necessary business changes and initial equipment upgrades were accomplished in 2021 with a sizeable investment,” he says. “Our business continues to grow at a rapid pace, and we are now operating at a level one might expect from a 30-year-old business.”